filiJacksonville Chapter 11 Lawyer
Some businesses find it necessary to hire a Jacksonville Chapter 11 lawyer to assist with a bankruptcy case. This is to ensure that they can reorganize their business and take the right steps to move forward. Businesses can seek assistance to help them navigate the process and regain their strength.
What Is Chapter 11 Bankruptcy?
Chapter 11 is a type of bankruptcy that allows a business to reorganize itself and continue operating under the United States Bankruptcy Code. There are several reasons that business debtors prefer chapter 11 to other forms of bankruptcy:
Filing for Chapter 11 bankruptcy allows businesses to have the flexibility they need to restructure their business debts. Most chapter 11 cases result in the debtor remaining in control and possession of its assets. The debtor is the “debtor-in-possession”.
Chapter 11 cases can be very complex. However, for small businesses in debt, the Code provides a simplified, expedited process that will save you time and money. A skilled Jacksonville Chapter 11 lawyer will determine if your business is eligible for the simplified process. This excludes obligations owed by insiders, such as the family members of business owners.
Reorganize Or Liquidate
A business debtor can use Chapter 11 to liquidate all or a portion of his business. Complex businesses often use Chapter 11 to liquidate all their assets. This flexibility is much better than the stricter Chapter 7 liquidation provisions.
Chapter 11 Reorganization vs Chapter 13 Consumer Reorganization
Any individual or business entity can file for chapter 11 bankruptcy relief. However, certain exceptions are made for entities specifically listed in the Code. Chapter 13 bankruptcy in Florida, also known as “consumer restructuring” bankruptcy, is only available to debtors who are consumer debtors and not business entities.
Individual debtors can use Chapter 13 to restructure their debts, but the total amount cannot exceed a certain amount. Chapter 11 does not limit the amount of debt.
Chapter 13’s plan of reorganization has a 5-year limit (with some extensions), but chapter 11 doesn’t have any time limits.
Initiating a Chapter 11 Case
The Code requires that a debtor file significant papers at the United States Bankruptcy Court in the bankruptcy district where it files its Chapter 11 case to initiate it. The documents must be filed regarding the debtor’s financial and business circumstances. Perjury penalties apply to financial information.
The Early Stages
After filing the bankruptcy petition, the debtor must comply with certain deadlines and provide creditors with notices. The filing of the plan of reorganization must be timely (similar to a business proposal) and that meets the Bankruptcy Code. For example, it must detail how the debtor will pay creditors and restructure their debts.
The bankruptcy automatic stay is in effect immediately after filing a bankruptcy case, even if it’s a Chapter 11 case. All creditors should not take any action to collect the debts against the bankruptcy debtor without permission from the bankruptcy court. This allows the debtor to have the time it needs to put together a plan.
Benefits of Working With an Experienced Chapter 11 Attorney
A Jacksonville Chapter 11 lawyer who is experienced in Chapter 11 bankruptcy will be able to advise you on what to do if your creditor violates the automatic stop. A creditor who violates this stay can face severe penalties.
An attorney will know the issues that the plan must address in order for the court to approve it. The plan must show the court that creditors will receive at least the same amount as in a liquidation.
A Jacksonville Chapter 11 lawyer will start negotiating with the largest creditors to help develop a plan. The Jacksonville bankruptcy lawyer may begin the process before the bankruptcy petition has been filed. In some cases, this could help to avoid bankruptcy.
Contact Bruner Wright P.A.
Bruner Wright P.A. is a top-rated experienced law firm servicing the Florida Panhandle and the South Georgia area. Our practice has been very successful in helping people discharge their debts and handle both bankruptcy and foreclosure. We offer a personal service that is comprehensive and thorough in all aspects of our industry. We are responsive to the needs of our clients.
Our Service Areas
- Tallahassee Fl
- Douglas Ga
- Brunswick Ga
- Augusta Ga
- South Georgia
- The Florida Panhandle
Contact us today to schedule a consultation to speak to a bankruptcy attorney about Chapter 11 in Jacksonville. A member of our team will review your case to help you make the right choice. We are focused on personal chapter 7 bankruptcy, chapter 13 bankruptcy foreclosure, and business bankruptcy chapter 11. We want you to achieve financial stability.